5.
77
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of the subsidy being required it was considered inexpedient to continue to burden the Estimates with the amount of the
subsidy. A new Head 27 (B) Hong Kong Naval Volunteer Force provision for which was made last year from a general vote "Royal Naval Volunteer Reserve" under Special Expenditure, Volunteer Defence Corps, has been included. The provision for this Force has been increased from $30,000 to $35,987.
8. As shown on page 27 of the Abstract of Differences which was forwarded with my despatch No.487 of 14th September, 1934, there is, apart from the saving due to the higher rate of exchange, a considerable reduction in expenditure on personal emoluments chiefly due to changes in personnel. The increase in respect of new posts is, however, $204,038 as against a decrease of $78,327 for abolition of posts. The necessity for the new posts is explained in the Colonial Secretary's opening speech. The chief increase is $51,730 under Medical Department which includes two additional Medical Officers, a Lady Medical Officer on a dollar salary, a Storekeeper and a locally appointed House Surgeon for Kowloon Hospital. These represent the minimum requirements of the Director of Medical and Sanitary Services to meet the increase in the work performed by his Department. The Police Department shows an increase of $46,048 against a decrease of $16,768 in respect of abolition of posts. The majority of the new posts are in the European Contingent where there is an increase under inspectors, Sub-Inspectors and Sergeants due chiefly to the rapid expansion of Kowloon and the requirements incidental
33803 to the administration of the Registration of Persons Ordinance,
34
1934. The increases due to the latter cause have already
received your sanction. There is a nominal increase of $9,965
under the new head "Naval Volunteer Force" and provision is made under Colonial Secretary's Office for the two Cadet Officers
whose
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